Here is an example to understand the process better for same P and R values but for different T values.
The values of P, R, and T have to be substituted in this formula to calculate the simple interest. Simple interest is found by using the formula SI = (PRT)/100 where P is the principal, R is the rate of interest, and T is the duration.
EASY WAY OF CALCULATING FORMAL CHARGE PLUS
i.e., if the rate of interest is 5% then R can be written as 5/100 = 0.05.Īmount: When a person takes a loan from a bank, he/she has to return the principal borrowed plus the interest amount, and this total returned is called the Amount. Sometimes, the simple interest formula is written as just SI = PRT where R is the rate of interest as a decimal. Similarly, we can solve for either R or T. For example, by dividing both sides of the SI formula S.I. The above formula can be further solved for any variable, P, R, or T. Time: Time is the duration for which the principal amount is given to someone.
Rate: Rate is the rate of interest at which the principal amount is given to someone for a certain time, the rate of interest can be 5%, 10%, or 13%, etc.Principal: The principal is the amount that was initially borrowed (loan) from the bank or invested.To understand more about this formula, click here. The rate of interest is in percentage R% (and is to be written as R/100, thus 100 in the formula). = (P × R × T)/100, where P = Principal, R = Rate of Interest in % per annum, and T = Time, usually calculated as the number of years. Simple interest is calculated with the following formula: S.I.
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